Income Tax Assessment Act 1936
Div 3 heading inserted by No 172 of 1978.
(Repealed by No 93 of 2011)
S 73QA repealed by No 93 of 2011, s 3 and Sch 3 item 44, effective 8 September 2011. For application, savings and transitional provisions see note under s
82KZLB
. S 73QA formerly read:
SECTION 73QA EXTRA DEDUCTION FOR INCREASE IN EXPENDITURE ON AUSTRALIAN OWNED RESEARCH AND DEVELOPMENT
Prerequisites for deduction
73QA(1)
An eligible company may deduct an amount for the Y
0
year of income if:
(a)
the company can deduct an amount for that year under subsection
73B(13)
or
(14)
for incremental expenditure incurred in the company
'
s group membership period; and
(b)
for each of the Y
-1
, Y
-2
and Y
-3
years of income, any of the following conditions is met:
(i)
the eligible company could deduct for the year of income an amount under subsection
73B(13)
or
(14)
for expenditure incurred in its group membership period;
(ii)
one of the eligible company
'
s other group members could deduct for the year of income an amount under subsection
73B(13)
or
(14)
for expenditure incurred in its group membership period;
(iii)
the eligible company received a start grant or commercial ready grant in respect of the year of income;
(whether or not the same condition is met for 2 or more of those years, and whether or not a condition is met by the same company for 2 or more of those years); and
(iv)
one of the eligible company
'
s other group members received a start grant or commercial ready grant in respect of the year of income;
(c)
the amount (the
eligible company
'
s share of the Australian owned part of the adjusted increase in expenditure on R
&
D by the group
) worked out under subsection (3) is more than zero.
Amount of deduction
73QA(2)
The amount of the eligible company
'
s deduction for the Y
0
year of income is 50% of the eligible company
'
s share of the Australian owned part of the adjusted increase in expenditure on R
&
D by the group.
73QA(3)
The
eligible company
'
s share of the Australian owned part of the adjusted increase in expenditure on R
&
D by the group
is the amount worked out using the formula:
Increase in expenditure on Australian owned R
&
D by the eligible company
×
Net increase in expenditure on Australian owned R
&
D by the group
×
Adjusted increase in expenditure on R
&
D by the group
Total increase in expenditure on Australian owned R
&
D by the eligible companies in the group
Net increase in expenditure on Australian owned R
&
D by the group
+
Net increase in expenditure on foreign owned R
&
D by the group
adjusted increase in expenditure on R
&
D by the group
means the amount worked out under section
73RE
.
increase in expenditure on Australian owned R
&
D by the eligible company
means the amount worked out under subsection
73RA(1)
.
net increase in expenditure on Australian owned R
&
D by the group
means the amount worked out under section
73RC
.
net increase in expenditure on foreign owned R
&
D by the group
means the amount worked out under section
73RD
.
total increase in expenditure on Australian owned R
&
D by the eligible companies in the group
means the amount worked out under subsection
73RA(2)
.
Note:
The amount worked out using the formula will not be more than zero if at least one of the following is zero:
73QA(4)
To avoid doubt, an eligible company for which there are no other group members may be able to deduct an amount under subsection (1).
Note:
For an eligible company for which there are no other group members, the values of the following components of the formula in subsection (3) will all be the same:
S 73QA and 73QB substituted for s 73Q by No 164 of 2007 , s 3 and Sch 11 item 34, effective 25 September 2007. For application provision, see note under s 73B(1AAA) . For transitional provisions regarding reduced notional expenditure on foreign owned R & D, see note under s 73P(1) .
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